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Draghi Says Short-Term Contraction in Euro Area Unavoidable Amid Austerity

European Central Bank President Mario Draghi said the euro area may not be able to escape a recession due to governments’ austerity measures.

“The unavoidable short-term contraction may be mitigated by the return of confidence,” Draghi said during a speech in Berlin today. “But in the medium term, sustainable growth can be achieved only by undertaking deep structural reforms that have been procrastinated for too long.”

To contact the reporter on this story: Jeff Black in Frankfurt at jblack25@bloomberg.net

To contact the editor responsible for this story: Matthew Brockett at mbrockett1@bloomberg.net

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